Fzulg
€243 Million
Project approvals in 2024
The FZulG (Forschungszulagengesetz) scheme in Germany is a tax incentive program designed to promote research and development (R&D) activities among businesses.
Introduced on January 1st, 2020, the scheme aims to encourage innovation by providing financial support to companies investing in R&D projects.
Under the FZulG scheme, eligible companies can claim tax credits of up to €1 million per year. These credits are calculated based on a percentage of eligible R&D expenses, including staff costs and certain contractor costs incurred within the European Union. Specifically, companies can claim 25% of eligible staff costs and 15% of eligible contractor costs.
The primary goal of the FZulG scheme is to stimulate R&D investments in Germany, thereby fostering economic growth, enhancing competitiveness, and driving innovation across various industries. By incentivizing companies to engage in R&D activities, the scheme aims to strengthen Germany’s position as a leader in innovation and technology on the global stage.
The six target sectors are
Iron & Steel
Aluminium
Cement
Fertilisers
Hydrogen
Electricity Production
The Scheme
As of March 28, 2024, the FZulG (Forschungszulagengesetz) scheme in Germany underwent significant changes to further support research and development (R&D) initiatives among businesses.
These changes include:
Increased Funding Limit
The maximum annual funding limit has been raised to €10 million per financial year for eligible expenses incurred after 27/03/2024, up from €4 million per annum.
Enhanced Research Allowance for SMEs
SMEs can now request an increase of research allowance by 10%, totalling 35%, allowing up to €3.5 million in funding annually.
Expansion of Eligible Expenses
Eligible expenses now include depreciation of movable fixed assets acquired or produced after March 27, 2024, used exclusively for company operations and necessary for R&D projects. Justification for their acquisition and their usage within project milestones should be furnished in the application.
Contract Research
The funding level for contract research commissioned after March 27, 2024, has increased to 70% from 60%, resulting in 17.5% funding for large companies and 24.5% for SMEs.
Personal Contributions
Personal contributions from sole proprietors or co-entrepreneurs in eligible projects can now be claimed at €70 per proven hour of work, up from €40.
Project Timeline
The certificate can be applied for before or during the financial year and can be valid for the current year, the past 4 years and up to three full financial years ahead.
Depreciation of Assets
Depreciation of assets used in research projects can now be included and must adhere to standard accounting principles. Assets need not be newly acquired or specifically made for the project, as long as they were acquired or manufactured after March 27, 2024.
Justification for their acquisition and their usage within project milestones should be furnished in the application.
State Aid Restriction
The €15,000,000 restriction on State aid for development projects, including FZulG research allowances, per undertaking and research
project remains unchanged.
Experience
We deliver hassle-free Forschungszulage outcomes for our German clients due to the following reasons:
With a presence in 13 countries, we bring a wealth of international expertise.
We are a Team of Innovation Experts helping build your Innovation Strategy
We are technologists, innovators, founders, and scientists delivering a technical and strategic approach to maximize your opportunity.
Our streamlined process minimizes your time investment as our expert team handles everything from preparation to submission and remains committed to supporting you until you receive the benefit.
We benchmark, develop and finalise your submission.
We focus on delivering multi-year approvals for future years as well as back-claiming from January 2020.
As little as 6 hours of your time for submission of a Forschungszulage claim. Our unique process of preparation, benchmark & submission slashes the client time required.
We do this through our bespoke Strategic Innovation Sprints, identifying innovation, unlocking new opportunities and including additional allowable spend to maximise this opportunity.
By working closely with your executive team and technical staff, we can extract the real value of innovation being carried out by your company.
Our process leaves behind an auditable trail that seamlessly integrates into your wider tax strategy, ensuring compliance and maximizing benefits.
Industries we work in
IT, Software & Telecoms
Circular Economy, Renewables & Energy
Data, GDPR, AI
Medtech, Laboratories & Pharma
Smart Factories, Engineering, IoT
Communications & Entertainment
Fintech, Financial & Professional Services
Smart Buildings & Architecture
Design & Engineering
Aviation & Aerospace
Legal Tech & Business Services
Resources & Infrastructure
Get in Touch
Do you want to get a deeper understanding, have questions, or want to discuss specific use cases? We are here for you.
